In my experience, not a lot of folks know about Amazon private label. And even when explained to them, they think that it’s “too good to be true.”
Amazon private label selling is a business model where you research products with high demand and low competition on Amazon, then create your own product/brand in the same category, typically sourcing vendors overseas.
Once the products arrive, you market and advertise them on Amazon’s platform.
Amazon has a system called Fulfilled-by-Amazon, where they store all your inventory, ship it, and handle customer service. This is all done for about 15% of your gross revenue and shipping costs. Everything else you keep.
To get started, it takes about 25–40 hours to find the product, source it, import it, and launch it. After that, I spend about 15 minutes per week per product managing it. Amazon’s doing all the hard work. The average product I source usually costs about $3000-$4000 to purchase wholesale.
The average product sells (ideally) 5–10 units per day with an average gross profit between $10-$20. So a great product will make you roughly $2000-$3000 per month. So your $4000 investment can easily make back $30,000 in a year—that’s a return of 750%.
And remember… this is all with about 15 minutes worth of maintenance per week.
I recommend reading Tim Ferriss’ The Four Hour Workweek. It outlines a lot of the things I’m writing about here.
